Innovation driving success for the City Region Top 100

Many congratulations to the companies listed in the 2017 Sheffield Star City Region top 100 survey.  At a time when the region seems to be gaining momentum in terms of business success stories, it is good to see so many local companies showing such good results to validate this success.  We have reviewed the companies listed to try to identify some common themes arising from their activities and results.

One such theme is innovation.  Many of the top 100 design and manufacture specialist products whilst others will have bespoke software and other systems to optimise the efficiency of their processes.  Government tax and other business policies are predicated on the principle that an economy full of innovative companies will yield higher profits and therefore tax receipts as well as more high value jobs. 

This correlation is apparent in the top 100 as well as in our own client base at Shorts.  A high proportion of our most profitable clients and those that we envisage being sold for high values have innovations and perhaps patents and other intellectual property rights that differentiate them. 

Our Innovation Taxes Group has helped hundreds of local companies claim many millions of pounds of tax savings through Government backed R&D tax credits and Patent Box relief.  These savings have been reinvested in jobs and innovation in the region. 

Many of the top 100 are already claiming these very beneficial reliefs.  However, we encounter companies every week who are still not claiming them which is a shame because HMRC are keen for eligible companies to claim their fair share.

Patent Box tax relief also seeks to offer tax breaks to companies that innovate by taxing them at just 10% on the profits they make that are derived from a patent.  This is almost half the normal rate of corporate tax applied to such profits.

R&D tax credits, in particular, are one of the main ways in which companies can legitimately reduce their tax bills so we would encourage any innovative companies not claiming to explore their eligibility immediately.

Against a backdrop of a Government focus on improving productivity across the economy and the Sheffield City Region enhancing its reputation for manufacturing excellence, there is every incentive for businesses to innovate to exploit the opportunities available.

To see a full copy of the survey, please click here